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ARMENIA LAYS GROUNDWORK FOR DOLLAR BOND SALE
Wall Street Journal
March 12 2015
By
Ben Edwards
Armenia is planning to meet investors in the U.S. and London about
issuing its second dollar bond, one of the banks arranging the roadshow
said on Thursday.
Deutsche Bank, HSBC HSBC -0.19% and JP Morgan JPM +1.88% are the
banks hired to run the meetings, which are due to start March 16.
Armenia last issued dollar bonds in September 2013, borrowing $700
million at a yield of 6.25% for seven years.
The former Soviet state's debt has been hit hard by the economic
crisis in Russia, with those dollar bonds now yielding around 6.4%,
according to Tradeweb, having been quoted as low as 4.8% back in June
last year. Yields rise as bond prices fall.
"When you compare how Armenia's bonds have traded compared to Georgia
or Azerbaijan, Armenia's been the one that's been most affected by
what's going on in Russia," said Anthony Simond, fixed income macro
research analyst at Aberdeen Asset Management ADN.LN +1.13%.
"That doesn't mean investors are going to flee from the new bond,
in all likelihood [Armenia's] going to have to pay a little bit more
in terms of yield to investors," Mr. Simond added.
Armenia is likely to raise $500 million for between seven and 10 years
from the new bond sale, which could be issued as soon as Thursday
next week.
In addition to the new deal, Armenia is offering to buy back up to
$200 million of its previous dollar bond issue. It will pay face
value for the bonds, which are currently trading at around 98 cents
on the dollar.
The country is rated Ba3 by Moody's MCO +2.40% Investors service,
three levels below investment grade.
http://blogs.wsj.com/frontiers/2015/03/12/armenia-lays-groundwork-for-dollar-bond-sale/
From: Baghdasarian
Wall Street Journal
March 12 2015
By
Ben Edwards
Armenia is planning to meet investors in the U.S. and London about
issuing its second dollar bond, one of the banks arranging the roadshow
said on Thursday.
Deutsche Bank, HSBC HSBC -0.19% and JP Morgan JPM +1.88% are the
banks hired to run the meetings, which are due to start March 16.
Armenia last issued dollar bonds in September 2013, borrowing $700
million at a yield of 6.25% for seven years.
The former Soviet state's debt has been hit hard by the economic
crisis in Russia, with those dollar bonds now yielding around 6.4%,
according to Tradeweb, having been quoted as low as 4.8% back in June
last year. Yields rise as bond prices fall.
"When you compare how Armenia's bonds have traded compared to Georgia
or Azerbaijan, Armenia's been the one that's been most affected by
what's going on in Russia," said Anthony Simond, fixed income macro
research analyst at Aberdeen Asset Management ADN.LN +1.13%.
"That doesn't mean investors are going to flee from the new bond,
in all likelihood [Armenia's] going to have to pay a little bit more
in terms of yield to investors," Mr. Simond added.
Armenia is likely to raise $500 million for between seven and 10 years
from the new bond sale, which could be issued as soon as Thursday
next week.
In addition to the new deal, Armenia is offering to buy back up to
$200 million of its previous dollar bond issue. It will pay face
value for the bonds, which are currently trading at around 98 cents
on the dollar.
The country is rated Ba3 by Moody's MCO +2.40% Investors service,
three levels below investment grade.
http://blogs.wsj.com/frontiers/2015/03/12/armenia-lays-groundwork-for-dollar-bond-sale/
From: Baghdasarian